Aadhaar Based Biometric authentication for financial transactions – The debate has begun

As per Press reports, in the near future, all new credit card swipe machines and automated teller machines (ATMs) will be required to have a mechanism for Aadhaar authentication using biometrics. There is nothing official about this, and Reserve Bank of India (RBI) is understood to be preparing such a directive to improve security and promote financial inclusion. However, as on date, i.e 28/09/2013, there is no public document.

Rajeev Chandrasekhar, the founder of BPL Mobile and currently a Rajya Sabha, has raised the first public awareness initiative on the costs of Aadhaar Based Biometric Authentication, that India has to bear.

He has written a letter to Dr.Manmohan Singh, Prime Minister of India.

The letter amongst issues, lays emphasis on the high cost associated with building a new Digital infrastructure from scratch.

This letter should spur more debate in the coming months on the Pros and Cons of Aadhaar Based Biometric authentication for pure financial transactions.

Biometric values that are captured for authentication and transmitted to remote locations for verification must be protected in transit. Yes, otherwise they are vulnerable to being intercepted and replayed just like your normal static passwords.